EDB to Finance Full-Cycle Tin Production in Kazakhstan
Almaty, 12 July 2010. The EDB and Sarymbet of Kazakhstan signed an agreement on financing the innovation project entitled Launching the First Phase of Metal Tin Production. In accordance with this document, the Bank will provide Sarymbet with a US48.7-million loan for ten years.
Under this project, a tin facility with a full production cycle, from ore mining and dressing to metal tin production, will be constructed and launched. This facility will use ore from Kazakhstan’s sole and Central Asia’s largest tin deposit Sarymbet. Equipment for the new facility will be purchased in Russia, Kazakhstan and other countries.
This facility with an annual capacity of 6,000 tonnes of metal ore will be commissioned in two years after the start of financing, and its design capacity will be achieved within a year of launch. In the first year of operation the facility will achieve about 50% of its design capacity. The total project cost will exceed $70 million.
This project is being implemented within the framework of the State Programme of Accelerated Industrial and Innovation Development of Kazakhstan in 2010-2014, and will effectively create a new sub-sector in the country’s non-ferrous metallurgy. The project will produce strong effects on export, import substitution, and integration: the facility will be capable of satisfying the existing and future demand for tin in Kazakhstan, Russia and other CIS countries. The project will have tangible multiple effect on the Russian and Kazakh economies.
According to the EDB’s estimate, about 3,500 new jobs will be created in Kazakhstan and Russia in the first years of the project, including jobs in related industries.
Additional Information
The joint-stock company Sarymbet (formerly Sarymbet LLP) was founded in 1998 with the purpose of launching the production and dressing of tin ore in the Sarymbet deposit, North Kazakhstan. Sarymbet is a 100% Kazakh company and a member of Lancaster Group which operates in various sectors including energy, mining, oil industry services, finance, hotel business, etc. Detailed information is available at www.lancasterholding.com.